Maryland has witnessed a significant milestone in its gambling industry, as the Maryland Lottery and Gaming Control Agency (MLGCA) reported a record-breaking $1.5 billion in tax revenue for the fiscal year spanning from July 2021 to June 2022. This figure surpasses the $1.39 billion generated in the previous fiscal year, highlighting the continued growth and success of the state’s lottery, casinos, sportsbooks, and daily fantasy sports platforms. The diverse sources of revenue, including the lottery, casinos, and the recently launched sports wagering and fantasy competitions, have contributed to this remarkable achievement.
Lottery and Casino Contributions:
Out of the total revenue, the lottery accounted for $673.7 million, while the casinos contributed $832.3 million. The lottery proceeds are allocated to the Maryland General Fund, which plays a crucial role in funding various state programs such as schools, public health and safety services, and environmental initiatives. On the other hand, the Education Trust Fund benefits from the revenue generated by casino gaming activities. Additionally, casinos also contribute funds to support cost-free problem gambling treatment and services, underscoring their commitment to responsible gambling practices.
Sports Wagering and Fantasy Competitions:
The introduction of sports wagering and fantasy competitions further bolstered the revenue figures. Although these segments contributed a modest $5.6 million during the reported fiscal year, the Maryland Lottery and Gaming Control Agency estimates that sports wagering, once fully established, will add approximately $30 million annually. The funds generated from sports wagering and fantasy competitions are primarily directed towards supporting education programs in the state.
Importance of Funding Programs and Services:
Director John Martin expressed immense pride in the agency’s contribution to essential programs and services that benefit Marylanders on a daily basis. While the entertainment aspect of the industry remains important, the Maryland Lottery and Gaming Control Agency never loses sight of its role within the community. By generating substantial tax revenue, the agency ensures the availability of necessary resources for education, public health and safety, and environmental initiatives, among others.
Future of Sports Betting in Maryland:
The Maryland Sports Wagering and Application Review Commission (SWARC) has recently approved regulations for the launch of mobile sports betting. Governor Larry Hogan has emphasized the need for expediency, urging the commission to accelerate its efforts to ensure that mobile sports gambling becomes operational by September. However, the specific launch date is yet to be determined.
The commission has finalized the amended online licensing procedures, which will now undergo emergency approval by the Maryland Legislature’s Joint Committee on Administrative, Executive, and Legislative Review. Once the legislature ratifies the altered online sportsbook licensing process, SWARC will commence accepting applications and issuing permits to approved entities. Governor Hogan, who signed the bill to legalize online and retail sports betting in Maryland last year, aims to have mobile sports betting available in time for the NFL season in September. The state plans to issue 60 mobile and 30 retail licenses to facilitate this expansion.
Maryland’s gambling industry has reached new heights with a record $1.5 billion in tax revenue generated during the fiscal year. The success can be attributed to the contributions from the lottery, casinos, sportsbooks, and daily fantasy sports platforms. As the industry continues to evolve, with the imminent launch of mobile sports betting, the revenue figures are expected to further increase, benefiting education programs and various state initiatives. The Maryland Lottery and Gaming Control Agency remains committed to its role in the community and takes pride in being a vital funding source for essential programs and services that Marylanders rely on every day.